The crypto winter turned into a crypto blizzard and has seen tokens face some of their toughest days. cardano [ADA] is one such altcoin that has returned to the bearish zone. In addition, the bearish zone has become crypto’s second home at the moment, especially given its performance over the past year.

However, every time Cardano…

… has slipped into this area, it has only sustained the bearishness for a period of 50-60 days. Except once during the decline from October to December, right after the ATH, which lasted 106 days.

Historically, right after this period, ADA has been known to notice and record a rally. The same has varied in the past, but right now ADA needs to regain the critical $1 if it ever plans to recover its losses.

Cardano price promotion | Source: TradingView – AMBCrypto

Before that happens, ADA will either consolidate or fall further until August 1. This would mark an appropriate number of days (52) for ADA before jumping back into the bullish zone.

Where this would place its investors is another conversation as these people are already disappearing. They will continue to do so until ADA registers a radical rally.

Despite the few gains seen in the past six months, investors didn’t care about either one as it was just a speck in the longer time frame. After peaking at 286k, the number of active on-chain investors dropped to less than 60k today.

Cardano active investors | Source: Coinmetrics – AMBCrypto

Of course, because investors are not active on-chain voluntarily, they will not be particularly forward-thinking when it comes to making trades. The same is also visible on the network as the number of on-chain transactions has dropped to just 60k.

Cardano transaction count | Source: Coinmetrics – AMBCrypto

However, if ADA can recover to $1, that could potentially change as investors would be willing to jump back in. Or at least cash out without losing much.

From now on, if Cardano settles for the weeks-long consolidation, volatility will also decrease, reducing the possibility of a price swing after the same hit earlier last week at an annual high.

Cardano volatility | Source: Coinmetrics – AMBCrypto

Bearishness on the charts has also abated as the downtrend loses momentum. The same can be supported by the decline of the ADX indicator below the 25.0 threshold (ref. Cardano price action image)

This post cardano [ADA]: Charting the path to a 125% rally after August 1

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